When Accountability Fails: ANIF’s Troubling Legacy
10․03․2025
By Tigran Grigryan
Hetq’s recent investigation revealed that on May 4, 2023, the Armenian government invested AMD 1.5 billion (around US$3.8 million) in a newly established company, CFW CJSC, led by an individual with close ties to Yerevan Mayor Tigran Avinyan’s wife. What makes this deal even more alarming is that the company received the funds just eight days after its creation.
The investment came through the Entrepreneur + State Anti-Crisis Investments Fund, which was established by the Armenian National Interests Fund (ANIF) in May 2020. ANIF is a government-backed foreign investment body, and CFW CJSC is registered in Delaware, USA—an offshore tax haven.
ANIF was set up in 2019 and was dissolved in 2024, with Avinyan serving as its chair until 2022, when he was appointed deputy mayor of Yerevan. Despite his new position, Avinyan continued to hold the chairmanship of ANIF until the organization’s dissolution in 2024, raising concerns about a potential conflict of interest. These concerns, however, went largely unaddressed, and investigations into ANIF were halted after its merger with the State Property Management Committee.
Between 2020 and 2023, the Entrepreneur + State Fund invested in ten companies and the EU-Armenia SME Fund, totaling AMD 6.65 billion (almost $17 million USD). In return, the state acquired up to 49% stakes in various companies, including CFW CJSC. The government’s official reasoning for investing in CFW CJSC was to strengthen Armenia’s cybersecurity and train specialists for both local and international markets. But serious doubts about the company’s operations and financial transparency soon surfaced.
CFW CJSC’s director, Andreasyan, holds a 33% stake in Lav Products LLC, while Mariam Pahlavuni, Avinyan’s wife, owns 34%. The link between Avinyan’s family and the company, combined with the rapid investment, raised suspicions of cronyism. Under Avinyan’s leadership at ANIF, the Entrepreneur + State Fund invested over AMD 1.5 billion ($3.8 million USD) in CFW CJSC—less than two weeks after its formation.
The investigation by Hetq also revealed that 48% of CFW CJSC’s shares are owned by Ararat Technologies LLC and 3% by Hayk Holding LLC—both Delaware-based companies under the leadership of Robert Levin. These offshore entities enjoy tax exemptions, further raising red flags about the financial transparency of the deal.
A key concern has been the lack of financial oversight. While the Entrepreneur + State Fund required that companies receiving funds submit financial reports and undergo independent audits, Hetq found that these companies failed to do so. When Hetq requested access to the audit results, the State Property Management Committee denied the request, citing confidentiality.
This secrecy is troubling, especially in light of the ongoing corruption scandals involving ANIF. Hetq also attempted to contact CFW CJSC’s director by visiting its listed office address, only to find it empty. A formal request for information was sent, but there was no response.
Further investigation revealed that as of April 2023, CFW CJSC employed 15 people. However, by August 2024, only two employees remained, with just the director on staff by September 2024. Despite receiving more than a billion drams (2.5 million USD) in public funds, the company has yet to fulfill its promise to enhance Armenia’s cybersecurity.
CFW CJSC was supposed to pay 49% of its profits to the Armenian government as dividends. However, when Hetq inquired with the Ministry of Finance, officials claimed they were unaware of the company’s existence and confirmed that no dividends had been paid.
Prime Minister Nikol Pashinyan recently described ANIF’s operations as a “failure and disgrace,” criticizing the fund’s activities as an “unacceptable breach of trust.” Though reports of financial mismanagement at ANIF had circulated since 2021, it wasn’t until late 2023 that these issues came to light publicly. When questioned about the slow pace of investigations, Pashinyan emphasized the need to follow legal procedures, but also expressed strong disapproval of the situation.
Given these ongoing scandals, the case of CFW CJSC raises urgent questions about the effectiveness and transparency of public investments. 1.5 billion AMD in taxpayer funds was channeled into a company with offshore connections and little to show for it. The Armenian public deserves full accountability for how their money is spent, yet institutions meant to oversee these funds continue to shield questionable financial practices from scrutiny.
This isn’t the first scandal involving Mayor Tigran Avinyan. We previously dedicated an entire Democracy Watch report to his various controversies. The fact that an official, implicated in several corruption scandals, continues to face no consequences highlights the deep democratic stagnation and lack of accountability in Armenia.
Democracy Watch is a joint initiative by CivilNet and the Regional Center for Democracy and Security, a Yerevan-based think tank.
This material has been funded by UK International Development from the UK government; however, the views expressed do not necessarily reflect the UK government’s official policies.